The 3-month compounded SORA has held in the high-2% range through early 2026, down roughly 0.85 percentage points from its 2023 peak, with MAS keeping its policy stance steady. Banks have narrowed their spreads, and fixed-rate packages have converged with floating ones — many sitting in the mid-3% range, while the HDB concessionary rate stays at 2.6%.
The practical consequence: anyone still carrying a loan locked in during the 2023 high-rate period is likely overpaying, and 2026 is one of the better refinancing windows in recent years. The catch is timing — check your lock-in and any prepayment penalty first, and start the process before your existing rate reverts.
Whether fixed or floating suits you comes down to your holding horizon and risk comfort, not the headline rate. Rate decisions look small monthly but compound across a loan’s life. A proper calculation — not a guess — is what separates a good refinance from a missed one.
